Can I get some help with this...It is tab 5 - capi...

Can I get some help with this...It is tab 5 - capital budgeting. I'm able to understand the rest but my prof, the initial cost of the new refrigeration unit is an outflow, so it would be shown as a negative number. After tax cash flow, annual electricity savings, and additional annual maintenance costs are all yearly, so you will need to use the PVIFA (annuity) table rather than the single sum table. After tax cash flow and annual electricity savings should be positive numbers while the additional annual maintenance costs would represent an outflow (negative). Net present value is the sum of all 5 numbers. With this information, I am lost. Please advise.

ACCT 346
Student Name
Bravo Baking Company began operations in May of 2010 with the production and sales of specialty breads.
The company has experienced a good market demand for its high protein,...ACCT 346
Student Name
Bravo Baking Company began operations in May of 2010 with the production and sales of specialty breads.
The company has experienced a good market demand for its high protein, low carbohydrate product called &quot;Hi-Lo&quot;
Hi-Lo's success has required that Bravo continue to make only this one product, however, Bravo's customers,
the local retailers, have been asking for more specialty breads from the company. The decision to expand will be made
in the coming weeks.
Weekly Assignments: Complete the assigned Tab each week.
In each worksheet there are several Green colored cells. These cells must be filled in with your response.
Points
Points
Due
Available Earned
Tab1) Product vs. Period Costs
Week 1
10
10.00
Tab 2) Cost of Goods Manufactured Schedule
Week 2
30
21.43
Tab 3) Break Even Analysis
Week 3
40
35.00
Tab 4) Incremental Analysis
Week 5
40
40.00
Tab 5) Capital Budgeting
Week 6
40
0.00
Tab 6) Variance Analysis
Week 7
40
0.00
200
106.43 Total

ACCT 346
Student Name

Jessica Guajardo

For Tables A : From the list below, identify if the cost item is a
&quot;Product Cost&quot; or &quot;Period Cost&quot; by typing &quot;Product&quot; or &quot;Period&quot; in
the appropriate box.

Enter either &quot;Product&quot; or &quot;Period&quot;
product
product
product
period
period
product
period
period
product
product
product
period
product

For Table B: From the list below, identify if the cost item is a &quot;Direct
Cost&quot; or &quot;Indirect Cost&quot; by typing &quot;Direct&quot; or &quot;Indirect&quot; in the
10 points appropriate box.

Jessica Guajardo
Bravo Baking identified the costs below to determine its cost of one unit of product and its monthly operating costs. (TCO 4)
Units produced
14,000
Part I Enter your solution in the green cells for each of the following:

Using the costs from Table A compute
A) Breakeven units (rounded to 2 decimal places)
B) Break-even sales dollars
C) Contribution Margin
D) Contribution Margin Ratio (enter as % for example 51% or decimal .51)
Part II Complete the following requirements
A) If Bravo requires a profit of $5,000 how many units must it sell?
B) What is the total revenue from A above?
C) If Bravo actually sells 8,000 units (Hint: Use Break Even $ from B Above)
1) What is the margin of safety in Dollars?
2) What is the margin of safety percentage?

Points
Based on your analysis, what recommendation would you make about Fruit &amp; Nuts? Explain.
It appears it would no be wise to eliminate the division as they show a loss but front the fixed cost.

###
40

(TCO 7)

40 Points

ACCT 346
Student Name
Bravo Baking Co is considering replacing an older freezer with a larger unit to freeze some of its bread.
The new unit has a larger capacity and Bravo estimates it can produce and sell more bread each year. From these additional sales
the annual after-tax cash flow is expected to be $4,000. In addition to more sales, the new freezer will save $1,200 in electricity each year.
However, the new freezer will cost an additional $2,000 each year for maintenance. The cost of the new unit is $25,000 and it is
expected to last 10 years. The salvage value at the end of its life is $6,000. The old unit is fully depreciated and can be disposed at cost.
Determine the Net Present Value of purchasing the new freezer using a required rate of return of 14%. Should Bravo purchase the freezer?
Use the format below to complete the NPV computations: